In Ajit-linked bank case, judge sees clear offence under PMLA

Mumbai: In the Maharashtra State Co-operative Bank (MSCB) scam chargesheet, it is alleged that a city entity called Guru Commodity had purchased the Jarandeshwar SSK factory in an auction conducted by the MSCB, in which Ajit Pawar had an influential role, at a throwaway price. Guru Commodity immediately handed over the factory on long-term lease to Jarandeshwar Sugar Mills Pvt Ltd.The private limited company is owned by Sparkling Soil Pvt Ltd. Four companies, Non-Con Energies Pvt Ltd, Firepower Energies Pvt Ltd, Shivraj Agro Estates Pvt Ltd and Sujay Agro Estates Pvt Ltd, where Pawar or his wife were former directors hold shares of Sparkling Soil Pvt Ltd, said the chargesheet.The ED had not named Pawar and his wife in the chargesheet. The chargesheet also did not mention who the end beneficiaries were in the case. “The investigation into specific roles and activities of various other persons suspected to be involved in the offence of money laundering is likely to take more time,” the chargesheet said.Issuing summons against three accused named in the chargesheet, Guru Commodity Services Ltd, Jarandeshwar Sugar Mills Pvt Ltd and chartered accountant Yogesh Bagrecha, special judge M G Deshpande said that the case background, statements recorded and various documents filed with the prosecution complaint (chargesheet) demonstrate a classic example of generation of proceeds from criminal activity relating to the scheduled offence and its placement, layering and integration, constituting a clear offence under the PMLA.The judge directed summons to be issued to the companies through their then and present directors as per title of the prosecution complaint. The judge observed that there are cogent, sound and prima facie sufficient grounds to direct issuance of process against all accused.The ED chargsheet said Jarandeshwar Cooperative Sugar Mill Ltd became operational in the year 1999-2000 and during its operational period, it obtained loans from MSCB from time to time, when Pawar was on the bank's board of directors. The account became NPA and a total amount of Rs 78.9 crore remained outstanding. MSCB sold the mill to Guru Commodity Services in 2010 through an auction.The chargesheet said that after the auction of the factory, a Rs 826 crore loan was taken on its name from PDCCB headed by Ajit Pawar and other banks, but the money was diverted for various other purposes.The order pointed out that investigation revealed that Jarandeshwar Sugar Mills Pvt Ltd was incorporated at a belated stage and was not eligible to participate in the auction process. The order pointed out that a witness in his statement stated that the purpose of incorporation of Jarandeshwar Sugar Mills Pvt Ltd was to take factory on lease from Guru Commodity.“Funds which were utilised by Jarandeshwar Sugar Mills Pvt Ltd for making payment to Guru Commodity were entirely sourced from Sparkling Soil .., which is also holding 99.5% of Jarandeshwar Sugar Mills Pvt Ltd,” the order said.